Trump announces trade deal with EU following months of negotiations
On Monday, Piper Sandler analyst Kashy Harrison updated the price target on Bloom Energy Corp (NYSE:BE) shares, increasing it to $33.00 from the previous $30.00, while maintaining an Overweight rating on the stock. The revision reflects a positive outlook on the company's market opportunities and growth potential. The stock has shown remarkable momentum, delivering a 139% return over the past year and currently trading near its 52-week high of $29.82. According to InvestingPro analysis, the company maintains a Fair financial health score, though current valuations suggest the stock may be trading above its Fair Value.
Bloom Energy is recognized for its ability to provide on-site power around the clock, which is seen as a competitive advantage in meeting the growing demand for electricity. The demand is expected to rise significantly by 2030, with data centers alone forecasted to require an additional 55 gigawatts (GWs). Moreover, the regional transmission organizations PJM and ERCOT predict that over 75 GWs of demand could emerge by the same year, excluding hydrogen in ERCOT's case. With a current market capitalization of $6.8 billion and revenue of $1.26 billion in the last twelve months, Bloom Energy is positioning itself to capture this growing market opportunity. Discover more detailed insights about BE's growth potential with InvestingPro, which offers 16+ additional investment tips and comprehensive financial analysis.
With the fourth quarter underway, Harrison notes that the current expectations for 2025 on Wall Street seem conservative. This situation provides Bloom Energy's management with the flexibility to set guidance that can be revised upwards over time. The company also annually discloses its backlog, and given its recent commercial successes, analysts anticipate solid progress.
The focus for investors, beyond the immediate quarter, should be on the conversion of the order from American Electric Power (NASDAQ:AEP), considering the utility's robust demand. This could have a positive impact on Bloom Energy's estimates in the upcoming years.
Harrison's analysis suggests that Bloom Energy is well-positioned to outperform in 2025, with reduced investment risk from the Inflation Reduction Act (IRA), direct leverage from the strong demand for datacenter power, and the potential for favorable estimate revisions.
In other recent news, Bloom Energy Corp. has seen several significant developments. The company reported Q3 revenues of $330 million and EBITDA of $21 million. Despite falling short of expectations, Bloom Energy maintained its full-year revenue and gross margin forecasts. The company also secured three new orders, including an 80-megawatt project in South Korea, and is ramping up its manufacturing capacity in Fremont in response to anticipated demand.
Bloom Energy also announced a substantial supply agreement with American Electric Power (AEP), marking the world's largest commercial procurement of fuel cells. This agreement involves an initial order of 100 megawatts of fuel cells, with expectations for additional orders in 2025.
Several analyst firms have responded to these developments with rating changes and price target adjustments. Baird maintained an Outperform rating and raised the price target to $32, while Roth/MKM initiated coverage with a Neutral rating. BofA Securities lifted its price target for Bloom Energy to $20.00, while maintaining an Underperform rating. UBS maintained a Buy rating and increased its price target from $21.00 to $33.00. However, HSBC shifted its rating from Buy to Hold, citing manufacturing capacity and financial considerations but forecasted positive free cash flow for Bloom Energy in 2026.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.